The world of cryptocurrency can be difficult to explain to a layperson. The process of mining, in particular, can sound like a magic trick. But just as prospectors mined for gold during the Gold Rush, crypto miners do painstaking work to earn tokens. The process of generating money gets much easier with crypto mining hardware. Here’s how it all works.
What Is Mining?
Instead of using a pickax to extract physical gold from the environment, a crypto miner performs a complex mathematical equation and receives cryptocurrency tokens as a reward. Miners record those transactions in blocks, which are then added to a chain—that’s the “blockchain” you’ve probably heard about.
Mining for cryptocurrency is a time-consuming process with relatively small rewards. However, cryptocurrency mining hardware lets a high-powered computer do the arduous work for you. Mining hardware will perform those computations quickly and repetitively, adding efficiency to the process.
The Right Rig
There’s a wide variety of different cryptocurrencies on the market, from the classic Bitcoin to the meme-inspired Dogecoin. BT-Miners offers a wide selection of ASIC (application-specific integrated circuit) mining rigs, each designed to mine a different type of crypto. For instance, Ethereum miners will only generate Ethereum tokens, and so on.
BT-Miners also offers consultation services for folks who are just getting started in crypto and who need help building the perfect rig. The more high powered and energy efficient your hardware is, the more quickly you’ll generate a return on your investment.
Building the Blockchain
Whereas traditional banks have ledgers to record transactions, the worldwide crypto landscape looks to the blockchain. It’s a series of recorded transactions—proof that you (or rather, your miner) completed an algorithmic task and received a reward. The more computations your miner performs, the more blocks are added to the chain. Each time a block is added, you receive crypto tokens as a reward, be they StarCoins or Ethereum.
Because crypto is such an active and changing landscape, there are always new equations out there for your miner to solve. Remember, however, that you’ll only get those tokens if your miner is the first one to complete that specific equation. If you have multiple rigs, they’ll find and solve those equations more quickly and generate more money for you.
If you want to get started mining for cryptocurrency but don’t know where to start, contact BT-Miners. We can explain in more depth how crypto mining hardware generates money and help you build your ideal rig.